Over the past five years American consumers have decreased their frequency of taking vacations. It is believed that a few factors may have led to this decrease. The recession of 2009 effectively stalled income growth in the country while at the same time the prices of vacation travel steadily rose. Given this information show with indifference mapping the change in consumer optimization between vacations as good x and “other goods” as good y the impact of:
a. The reduction of income
b. The increase in prices
c. What if instead of any change to income or prices (you can assume they just stay constant), the true reason for the reduction was that past bad experiences on vacations just led consumers to want less of them.